BIR Ruling [DA-021-99]

January 12, 1999 BIR RULING [DA-021-99] Globe Coco Products Manufacturing Corporation Bo. Lidong, Sto. Domingo, Albay Attention: Ms . Aibe U . Tan Director Gentlemen : This refers to your letter dated December 1, 1998 requesting for a Tax Exemption Certificate pursuant to Revenue Regulations No. 2-98 on account of your registration with the Board of Investment (BOI) under Executive Order No. 226, otherwise known as the "Omnibus Investments Code of 1987." cdtech It is represented that your company, with plant address located at Bo. Lidong, Sto. Domingo, Albay, has been registered with the BOI on a non-pioneer status as the New Producer of Coconut Oil and Copra Cake under Certificate of Registration No. EP-96-241 dated November 7, 1996; and that you are entitled to an Income Tax Holiday of four (4) years pursuant to No. 6(a) of the Specific Terms and Conditions accompanying your Certificate of Registration, viz: "6. The enterprise shall be entitled to the following incentives: a. Income Tax holiday for four (4) years from October 1996 or actual start of commercial operation of its project but in no case earlier than the date of registration. Date of Filing: Within thirty (30) days from filing of the final ITR with BIR." In reply, please be informed that under Section 2.57.5(B)(2) of Revenue Regulations No. 2-98, implementing Section 57(B) of the Tax Code of 1997, the withholding tax prescribed in the said Regulations shall not apply to income payments to persons enjoying exemption from the income tax provided by Republic Act No. 7916 and the Omnibus Investments Code of 1987. Accordingly, since Globe Coco Products Manufacturing Corporation is a BOI-registered enterprise, enjoying exemption from payment of income taxes pursuant to the provisions of Section 39(a)(1) of the Omnibus Investment Code of 1987, for a period of four (4) years reckoned from the start of its commercial operation, this Office is of the opinion, as it hereby holds, that it is exempt from the payment of the creditable withholding tax imposed under Revenue Regulations No. 2-98, on income payments received by it during the aforementioned period. (BIR Rulings No. 020-95 dated February 13, 1995) This ruling is issued on the basis of the foregoing facts as represented. However if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void from the date of issuance. cdll Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)